segmentation variables for retail stores

segmentation variables for retail stores

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  Retail Marketing Segmentation - N. Mohammed Nizar
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  A market isa group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and services tat can satisfy these needs Mass Marketing Segmentation Marketer
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  Market Segmentation Theprocess of dividing the heterogeneous Total market into small group of customers who share similar set of wants Ex. Women Working Housewife Different groups have different promotional strategies and mkg mixes because they have diff. wants and needs
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  Sub-segments Women Working Housewife Children No Children Segmentation helps the retailer to customize the product and tailor its promotional campaigns
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  Stages in SegmentationTargeting Decide on targeting Identify which segments will be Targeted 3. How many segment should be targeted Positioning Understanding the target segment 2. place offering in the mind of the target segment 3. Evolve mkting mix Segmentation Choose variable for segmentation market 2. State a profile of Segment 3. Verify prospective segment
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  Benefits Development ofMarketing Mix Store location decisions Understand customer behavior Merchandising decision Promotional campaigns Positioning
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  Criteria for effectivesegmentation Homogeneous within Heterogeneous between Substantial - should be large enough Actionable Accessible Measurable
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  Dimensions for SegmentationGeographic Demographic Psychographic Behavioral
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  SEGMENTATION BASE SELECTEDSEGMENTATION VARIABLES Geographic Segmentation Climate Density of area City Size Region Southwest, Mountain States, Alaska, Hawaii Major metropolitan areas, small cities, towns Urban, suburban, exurban, rural Temperate, hot, humid, rainy Demographic Segmentation Income Marital status Sex Age Under 11, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+ Male, female Single, married, divorced, living together, widowed Under $25,000, $25,000-$34,999, $35,000-$49,999, $50,000-$74,999, $75,000-$99,000, $100,000 and over Occupation Education Some high school, high school graduate, some college, college graduate, postgraduate Professional, blue-collar, white-collar, agricultural, military
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  SEGMENTATION BASE SELECTEDSEGMENTATION VARIABLES Psychological Segmentation Learning-involvement Perception Personality Needs-motivation Shelter, safety, security, affection, sense of self-worth Extroverts, novelty seeker, aggressives, low dogmatics Low-risk, moderate-risk, high-risk Low-involvement, high-involvement Psychographic Subcultures (Race/ethnic) Religion Cultures (Lifestyle) Segmentation Economy-minded, couch potatoes outdoors enthusiasts status seekers American, Italian, Chinese, Mexican, French, Pakistani Catholic, Protestant, Jewish, Moslem, other African-American, Caucasian, Asian, Hispanic Family life cycle Social class Lower, middle, upper Bachelors, young married, full nesters, empty nesters Attitudes Positive attitude, negative attitude Sociocultural Segmentation
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  Values Refers tobelief system ex. Benetton targeted customers who value protection of environment, it encourages recyclable packaging and refill services Cultural values
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  VALS Begins withpeople instead of products Classifies people by their unique style of living It then determines how marketing factors fit into their lives - The self-driven materialists - the independent Explorer - The Passive traditionalist - The enthusiastic experiments - The mature Sensible
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  Behavioral Reason/occasion for purchase Frequency of purchase Quantity of purchase Product usage Loyalty status Buyers readiness stage Source of purchase
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  Market Targeting Choosingthe segment Measure the attractiveness and its capacity to serve in the segment Factors Size of the segment Purchasing power Growth rate Presence of competition profitability
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  Customer Profile Profileshelp the retailer in understanding the needs of the target segments and its shopping behavior Customer demographics Family decision making Psychographics Purchsing behavior Motivation for purchase Purchasing process Time utility Space utility